Stock Market News – Charting successful technical tests, U.S. benchmarks nail first support
U.S. stocks are higher early Friday, rising amid optimism over stimulus-package prospects.
Against this backdrop, each big three U.S. benchmark has registered a bullish reversal from well-defined support. The S&P 500 has nailed its range bottom (3,885) while the Nasdaq Composite and Dow industrials have rallied from their breakout points.
Before detailing the U.S. markets’ wider view, the S&P 500’s
hourly chart highlights the past two weeks.
As illustrated, the S&P remains in range-bound consolidation mode.
Consider that Thursday’s session low (3,885.03) precisely matched the range bottom (3,885) to punctuate a successful retest. Bullish price action.
Similarly, the Dow Jones Industrial Average
has asserted a near-term range.
Tactically, recall that the breakout point (31,272) marks major support, an area also detailed on the daily chart.
Here again, Thursday’s session low (31,285) registered nearby to punctuate a successful retest.
Meanwhile, the Nasdaq Composite
has also maintained a familiar floor.
The specific area matches its breakout point (13,729), a level also detailed on the daily chart below. Thursday’s session low (13,714) registered in the vicinity.
Conversely, recall that the Nasdaq’s all-time high (14,175) — established Tuesday — has registered slightly under its projected target in the 14,200 area. (See the Feb. 5 review.)
Widening the view to six months adds perspective.
On this wider view, the Nasdaq’s pullback from record highs has effectively tagged first support.
To reiterate, the week-to-date low (13,714) has registered slightly under the breakout point (13,729), detailed repeatedly. The successful retest preserves a comfortably bullish intermediate-term bias.
Similarly, the Dow Jones Industrial Average has maintained its first notable support.
The specific area matches its breakout point (31,272), also detailed on the hourly chart.
The Dow’s week-to-date low (31,285) has registered slightly above major support.
Also notice Thursday’s bullish reversal from support, punctuated by a close near session highs. Constructive price action.
Meanwhile, the S&P 500’s pullback has not quite reached the breakout point (3,870).
Recall that the index maintained its range bottom (3,885) an area better illustrated on the hourly chart.
The bigger picture
As detailed above, the major U.S. benchmarks are acting well technically.
On a headline basis, each big three benchmark has closely observed well-defined support to punctuate an orderly pullback from recent record highs.
Bullish price action.
Moving to the small-caps, the iShares Russell 2000 ETF
continues to digest the most decisive February breakout.
Recall that the early-month spike marked an unusually strong two standard deviation breakout — encompassing four straight closes atop the 20-day Bollinger bands — likely laying the groundwork for longer-term follow-through. (See the comparable early-November and early-January spikes atop the bands.)
Tactically, trendline support closely matches the breakout point (216.70).
Meanwhile, the SPDR S&P MidCap 400 ETF
also remains in consolidation mode.
Tactically, recall that gap support, circa 453.10, is closely followed by the breakout point (451.50). (See Wednesday’s review.)
Thursday’s session low (453.07) effectively matched gap support. Constructive price action.
Looking elsewhere, the SPDR Trust S&P 500
has also asserted a flag pattern near record highs.
Selling pressure remains muted near record highs, improving the chances of eventual follow-through.
Placing a finer point on the S&P 500, the index has tagged familiar support.
To reiterate, Thursday’s session low (3,885.03) precisely matched the range bottom (3,885).
Delving slightly deeper, the breakout point (3,870) marks a firmer floor.
More broadly, the week-to-date downturn has been orderly amid still muted selling pressure near record highs. Virtually no true technical damage has been inflicted thus far.
Tactically, the prevailing bull flag — underpinned by near-term support (3,885) — is a familiar continuation pattern. Trading ranges are more frequently exited in the same direction in which they were entered.
Delving deeper, the firmer breakout point (3,870) is followed by the 3,830 area, and the ascending 50-day moving average, currently 3,789.
Beyond technical levels, the S&P 500’s intermediate-term bias remains comfortably bullish, based on today’s backdrop.
Friday’s Watch List
The charts below detail names that are technically well positioned. These are radar screen names — sectors or stocks poised to move in the near term. For the original comments on the stocks below, see The Technical Indicator Library.
Drilling down further, the SPDR S&P Biotech ETF
is acting well technically.
As illustrated, the prevailing downturn from recent record highs places the group 11.7% under the February peak.
Delving slightly deeper, the group’s first significant support matches the former breakout point (151.60) and the 50-day moving average, currently 152.38. A sustained posture atop this area signals a comfortably bullish intermediate-term bias.
Initially profiled March 27, Apple, Inc.
has returned 100.8%. The shares remain well positioned — in the broad sweep — though a key technical test may be taking shape.
Market bears will point to the January false breakout, punctuated by a pullback to the range following the company’s quarterly results, released Jan. 27.
Moreover, the subsequent February rally attempt stalled at the range top, even as the broad markets were breaking to record highs.
Separately, the prevailing pullback has been punctuated by consecutive closes under the 50-day moving average. Collectively, these are signals of a potential trend reversal.
Still, this is Apple’s backdrop, and Apple gets a longer technical leash than potentially any other name.
Tactically, the late-2020 breakout point (125.40) marks significant support. (Recall the October peak defined a double bottom defined by the September and November lows.)
Separately, the 100-day moving average, currently 124.50, has defined Apple’s recent trend. The shares have not closed under the 100-day average since April, amid the worst of the virus-fueled carnage.
So combined, the 124.50-to-125.40 area marks a key bull-bear inflection point. An eventual violation would mark a “lower low” — combined with a violation of the trending indicator —raising a technical question mark.
is a well positioned large-cap data storage name. (Yield = 3.7%.)
As illustrated, the shares have asserted a mid-February flag-like pattern hinged to the steep January strong-volume spike. (The prevailing range has been punctuated by a nominal record close following a rare analyst double upgrade.)
Tactically, a sustained posture atop the range bottom (70.05) signals a comfortably bullish bias.
More broadly, the shares are well positioned on the 10-year chart, rising from a massive ascending triangle hinged to the 2016 low.
Canada Goose Holdings, Inc.
is a mid-cap Toronto-based luxury apparel maker, offering products including down jackets, rainwear and footwear.
Earlier this month, the shares gapped to 18-month highs, rising after the company’s quarterly results.
The subsequent pullback has been comparably flat — underpinned by the breakout point (39.30) — and punctuated by this week’s upturn to challenge the range top. A near-term target projects to the 50 area on follow-through.
Finally, Dow 30 component Walmart, Inc.
is approaching a potentially consequential technical test.
As illustrated, the shares have gapped firmly lower, pressured amid a volume spike after the company’s mixed fourth-quarter results.
The downturn punctuates a failed test of trendline resistance, placing the shares at three-month lows.
Tactically, the downdraft places the marquee 200-day moving average, currently 136.96, firmly within view. As always, the 200-day is a widely-tracked longer-term trending indicator. A violation would inflict incremental damage to an already bearish intermediate-term backdrop.
Conversely, the breakdown point (139.20) is followed by the bottom of the gap (140.70). A reversal atop this area would mark an early step toward stabilization.
Still well positioned
The table below includes names recently profiled in The Technical Indicator that remain well positioned. For the original comments, see The Technical Indicator Library.
|Company||Symbol* (Click symbol for chart.)||Date Profiled|
|Texas Instruments, Inc.||TXN||Feb. 18|
|Zynga, Inc.||ZNGA||Feb. 18|
|Chevron Corp.||CVX||Feb. 18|
|Lyft, Inc.||LYFT||Feb. 16|
|Inphi Corp.||IPHI||Feb. 16|
|Intel Corp.||INTC||Feb. 12|
|KLA Corp.||KLAC||Feb. 12|
|Pinterest, Inc.||PINS||Feb. 12|
|Nvidia Corp.||NVDA||Feb. 11|
|Veeva Systems, Inc.||VEEV||Feb. 11|
|Helmerich & Payne, Inc.||HP||Feb. 11|
|Zoom Video Communications, Inc.||ZM||Feb. 10|
|Hologic, Inc.||HOLX||Feb. 10|
|McDonald’s Corp.||MCD||Feb. 10|
|U.S. Global Jets ETF||JETS||Feb. 9|
|Lowe’s Companies, Inc.||LOW||Feb. 9|
|Motorola Solutions, Inc.||MSI||Feb. 9|
|iShares U.S. Home Construction ETF||ITB||Feb. 8|
|Lennar Corp.||LEN||Feb. 8|
|Nike, Inc.||NKE||Feb. 8|
|Beyond Meat, Inc.||BYND||Feb. 8|
|Cisco Systems, Inc.||CSCO||Feb. 5|
|Datadog, Inc.||DDOG||Feb. 5|
|Appian Corp.||APPN||Feb. 4|
|Diamondback Energy, Inc.||FANG||Feb. 4|
|Wix.com, Ltd.||WIX||Feb. 3|
|CarMax, Inc.||KMX||Feb. 3|
|Toll Brothers, Inc.||TOL||Feb. 2|
|Eagle Materials, Inc.||EXP||Feb. 2|
|Avis Budget Group, Inc.||CAR||Feb. 1|
|Capital One Financial Corp.||COF||Jan. 29|
|NetApp, Inc.||NTAP||Jan. 29|
|Aptiv, plc||APTV||Jan. 29|
|Rio Tinto Group||RIO||Jan. 26|
|Sorrento Therapeutics, Inc.||SRNE||Jan. 26|
|Netflix, Inc.||NFLX||Jan. 25|
|Cummins, Inc.||CMI||Jan. 25|
|Magna International, Inc.||MGA||Jan. 22|
|M.D.C. Holdings, Inc.||MDC||Jan. 22|
|Zebra Technologies Corp.||ZBRA||Jan. 14|
|Chegg, Inc.||CHGG||Jan. 11|
|Macy’s, Inc.||M||Jan. 11|
|Nexstar Media Group, Inc.||NXST||Jan. 11|
|iShares Transportation Average ETF||IYT||Jan. 11|
|Energy Select Sector SPDR||XLE||Jan. 8|
|Teledoc Health, Inc.||TDOC||Jan. 8|
|Skyworks Solutions, Inc.||SWKS||Jan. 7|
|Financial Select Sector SPDR||XLF||Jan. 7|
|Synaptics, Inc.||SYNA||Jan. 4|
|JPMorgan Chase & Co.||JPM||Dec. 22|
|LivePerson, Inc.||LPSN||Dec. 21|
|United Therapeutics Corp.||UTHR||Dec. 21|
|Shopify, Inc.||SHOP||Dec. 18|
|Calix, Inc.||CALX||Dec. 17|
|Elastic N.V.||ESTC||Dec. 17|
|Tenet Healthcare Corp.||THC||Dec. 16|
|Williams-Sonoma, Inc.||WSM||Dec. 15|
|iShares Nasdaq Biotechnology ETF||IBB||Dec. 15|
|SDPR S&P Regional Banking ETF||KRE||Dec. 14|
|Etsy, Inc.||ETSY||Dec. 14|
|F5 Networks, Inc.||FFIV||Dec. 8|
|Emerson Electric Co.||EMR||Dec. 8|
|Zscaler, Inc.||ZS||Dec. 7|
|Fortinet, Inc.||FTNT||Dec. 7|
|Kulicke and Soffa Industries, Inc.||KLIC||Dec. 7|
|Dillard’s, Inc.||DDS||Dec. 4|
|Spotify Technology S.A.||SPOT||Dec. 3|
|Valero Energy Corp.||VLO||Dec. 3|
|Analog Devices, Inc.||ADI||Dec. 2|
|Sonos, Inc.||SONO||Dec. 1|
|American Airlines Group, Inc.||AAL||Nov. 30|
|Zillow Group, Inc.||ZG||Nov. 23|
|Bank of America Corp.||BAC||Nov. 20|
|SPDR S&P Oil & Gas Exploration and Production ETF||XOP||Nov. 20|
|MetLife, Inc.||MET||Nov. 19|
|Kohl’s Corp.||KSS||Nov. 18|
|Applied Materials, Inc.||AMAT||Nov. 17|
|RingCentral, Inc.||RNG||Nov. 13|
|Regions Financial Corp.||RF||Nov. 13|
|Snap, Inc.||SNAP||Nov. 9|
|Norfolk Southern Corp.||NSC||Nov. 9|
|Communications Services Select Sector SPDR||XLC||Nov. 5|
|Health Care Select Sector SPDR||XLV||Nov. 5|
|Alphabet, Inc.||GOOGL||Nov. 5|
|Keysight Technologies, Inc.||KEYS||Nov. 4|
|8×8, Inc.||EGHT||Nov. 3|
|Exact Sciences Corp.||EXAS||Nov. 2|
|Universal Display Corp.||OLED||Nov. 2|
|Maxim Integrated Products, Inc.||MXIM||Oct. 21|
|The Travelers Companies, Inc.||TRV||Oct. 21|
|Micron Technology, Inc.||MU||Oct. 20|
|Vulcan Materials Co.||VMC||Oct. 19|
|ON Semiconductor Corp.||ON||Oct. 16|
|Ford Motor Co.||F||Oct. 15|
|SPDR S&P Homebuilders ETF||XHB||Oct. 9|
|Shake Shack, Inc.||SHAK||Oct. 9|
|SPDR S&P Biotech ETF||XBI||Oct. 8|
|Twilio, Inc.||TWLO||Oct. 8|
|Cloudflare, Inc.||NET||Oct. 7|
|SailPoint Technology Holdings, Inc.||SAIL||Oct. 1|
|Martin Marietta Materials, Inc.||MLM||Sept. 30|
|Abercrombie & Fitch Co.||ANF||Sept. 29|
|Zendesk, Inc.||ZEN||Sept. 23|
|Scientific Games Corp.||SGMS||Sept. 23|
|Crocs, Inc.||CROX||Sept. 14|
|Five Below, Inc.||FIVE||Sept. 10|
|Eastman Chemical Co.||EMN||Sept. 10|
|Deere & Co.||DE||Aug. 24|
|Johnson Controls International||JCI||Aug. 21|
|General Motors Co.||GM||Aug. 20|
|Builders FirstSource, Inc.||BLDR||Aug. 18|
|Enphase Energy, Inc.||ENPH||Aug. 13|
|Freeport McMoRan, Inc.||FCX||Aug. 10|
|Industrial Select Sector SPDR||XLI||Aug. 6|
|Penn National Gaming, Inc.||PENN||July 30|
|SPDR S&P Metals & Mining ETF||XME||July 28|
|iShares MSCI South Korea ETF||EWY||July 28|
|Advanced Micro Devices, Inc.||AMD||July 23|
|Materials Select Sector SPDR||XLB||July 20|
|Caterpillar, Inc.||CAT||July 20|
|Roku, Inc.||ROKU||July 16|
|Consumer Discretionary Select Sector SPDR||XLY||July 13|
|Danaher Corp.||DHR||June 24|
|Fiverr International, Ltd.||FVRR||June 19|
|Square, Inc.||SQ||June 8|
|SPDR S&P Retail ETF||XRT||June 3|
|iShares MSCI Japan ETF||EWJ||May 29|
|Synopsis, Inc.||SNPS||May 27|
|Agilent Technologies, Inc.||A||May 15|
|Five9, Inc.||FIVN||Apr. 24|
|Chewy, Inc.||CHWY||Apr. 24|
|Tesla, Inc.||TSLA||Apr. 23|
|VanEck Vectors Semiconductor ETF||SMH||Apr. 17|
|Okta, Inc.||OKTA||Apr. 16|
|Target Corp.||TGT||Apr. 16|
|Invesco QQQ Trust||QQQ||Apr. 14|
|Apple, Inc.||AAPL||Mar. 27|
|iShares MSCI Emerging Markets ETF||EEM||Mar. 19|
|Microsoft Corp.||MSFT||Feb. 22|
|* Click each symbol for current chart.|
Stock Market News – Charting successful technical tests, U.S. benchmarks nail first support
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